Tropicana could soon be in the hands of French investors.
PepsiCo announced Tuesday that it has entered an agreement to sell Tropicana, Naked and other juice brands to PAI Partners, a European private equity firm with experience in the food and beverage space.
The deal will net $3.3 billion for PepsiCo, which will retain 39 percent non-controlling interest in the new venture and exclusive U.S. distribution rights.
It is expected to close later this year or early next.
“This joint venture with PAI enables us to realize significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands,” Pepsi CEO Ramon Laguarta said in a statement.
Tropicana is one of the Bradenton area’s biggest employers. No changes to its production facility there were announced Tuesday.
In 2020, the brands on the table generated $3 billion in net revenue but fell short of Pepsi’s overall operating margin. PepsiCo reported net sales of $70.37 billion last year from its food and beverage empire that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and SodaStream.
Pepsi said it plans to use the sale proceeds to strengthen its balance sheet and invest in its business.
Frédéric Stévenin, a managing partner at PAI, lauded the agreement in a statement. The firm has also invested in food companies like Froneri, Addo Food Group and Euro Ethnic Foods, according to its website.
“We are also thrilled that PepsiCo will remain involved as our partner in the joint venture as we execute our plans to drive the future success of these brands,” he said.